You put some of your retirement savings in a "bucket" for emergencies such as when the stock or bond market tanks, Tobias said. Then you dip into that secure account -- usually cash stashed in a federally-ensured money market account -- for your living expenses while the markets rebounds, Tobias said.

He suggests saving at least two years of living expenses in the "bucket."

That will give you enough money to live off while the markets recovers, Tobias said.

"It worked for our clients during the 2008 debacle," he said.

No one had to take out money from the devastated stock market during the Great Recession, Tobias added.

Then when stocks surge -- such as recently when the S&P 500 was near a five-year high -- retirees can sell some stocks to replenish their "bucket" fund.

Having some stocks, even in these volatile times gives retirees a chance to build assets so their money will last, Tobias added.

Saving some cash aside is a good idea to cover an emergency -- but you don't need but a few months' worth of expenses in a low-interest account, said Boca Raton financial planner Mari Adam. "You’re losing money to inflation," she said.

Instead, you want to keep a diversified portfolio that includes high-quality stocks and bonds, Adam suggested.

That way, in a severe financial free-fall such as the 2008 bust, you will have bonds that can be sold to cover your expenses.

"Retirees need a plan to spend their savings wisely while maintaining assets that grow and generate income," said Eleanor Blayney, consumer advocate for the national Certified Financial Planner Board.

Most retirees won't be able to live on the average Social Security check, she said.

The average monthly payment is now about $1,240 a month and will rise to $1,261 in January after the 1.7 percent cost of living adjustment.

"It’s important to focus on what you can control" -- such as your spending and how you allocate your nest egg, Blayney added.

Getting a part-time job to pay expenses during retirement can help people keep their savings, she added.

However, many retirees hated their jobs so working during their Golden Years is not an option, said Deerfield Beach financial adviser Chris Nichols.

Instead they should focus on watching their assets -- at least once a year look at what is growing, what isn't and what you should add or get rid of, Nichols said.

More than 130,000 have already created an online account in the first week since the Social Security Administration opened a site for people to find out how much their estimated Social Security benefits will be once they retire.